AUD/USD is caught between the forces of an improving global backdrop (or at
least less downside risks) and pricing for a cut of the RBA's cash rate. Pricing
for a rate cut by the RBA next month--currently at 46%--can weigh on AUD, says
CBA. There are no policy-relevant Australian economic data releases this week.
The next important technical resistance and support levels for AUD/USD are
offered at 0.6939 (Dec. 13 2019 high) and the 50-day moving average at 0.6868.
The currency now trades at close to 0.6900.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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